Oil is heading for its biggest weekly rise in more than three months, following fears about the Omicron mutation, although traders remain worried about the outlook for demand, Bloomberg reported.
WTI futures rose 7.4% this week, as fuel consumption has so far not been hit hard by the Omicron mutation.
However, the climate remains fragile after the “sell-out” on Thursday, amid rising cases and the imposition of new restrictions on coronavirus by some governments.
“The oil market seems to have ruled out the worst-case scenario again, but it would be good to leave room for potential residual risks to oil demand,” said Carsten Fritsch, an analyst at Commerzbank AG in Frankfurt. “The rise dynamics are decreasing.”
Crude has recovered dramatically since entering the bear market on November 30th.
Concerns remain over the Omicron mutation, which according to a new study is 4.2 times more contagious than Delta in its early stages.
In many parts of the eastern United States, including New Jersey and Connecticut, there is an increase in hospitalizations, and the city of London could once again become a “ghost town” as companies recommend thousands of employees working with teleworking, based on the latest directives from the British Government.
Traders are still facing the prospect of weakening the natural crude market in Asia, despite Saudi Arabia’s move to raise oil prices in January.
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I am Sophia william, author of World Stock Market. I have a degree in journalism from the University of Missouri and I have worked as a reporter for several news websites. I have a passion for writing and informing people about the latest news and events happening in the world. I strive to be accurate and unbiased in my reporting, and I hope to provide readers with valuable information that they can use to make informed decisions.
